BANOKO SENTNAL NC PILIPINAS

OFFICE OF THE DEPUW GOVERNOR

SUPERVISION AND EXAMINATION SECTOR

crRcutAR LETTER NO. Ct-2018{08

To : ALL BANKS

Subject : Updated Validation Rules of the BSP for Financial Reporting Package
Related Reports

In an effort to further assist banks in finalizing the Financial Reporting

Package (FRP) Related Reports, attached are changes to the validation rules provided
under Circular Letter No. CL-20L7-060 dated 02 October 2017 which are used by the
BSP to determine whether the entries in the reports are either balanced and
reconciled or cited with
mathematical defects requiring correction and the
submission of amendments that are subject to penalty in accordance with existing
regulations. Same validation rules emanate from the existing Reconciliation Report
electronically transmitted by the BSP to banks immediately after the submitted
report has been processed and validated.

The changes include the following updated validation rules used to reconcile
the FRP against the following related reports:

1) Basel lll CapitalAdequacy Ratio Report'

2l Risk Based CapitalAdequacy Ratio Report2
3) Report on Cross-Border Financial Positions
4l Expanded Report on Real Estate Exposure
5) Published Balance Sheet
6) Report of Selected Branch Accounts (Branch Report)
7l Report on Compliance with Mandatory Agri-Agra Credit under R.A. 10000
(Agri-Agra Report)
8) Report on Repurchase Agreement

Additional validation rules will be issued through a Circular Letter (CL) as

future enhancements to the reports are prescribed and/or as new formulations are
introduced. As validation rules are updated and issued, a lead time of one (1)
reporting cycle after the issuance of the corresponding CL shall be observed before
penalties for non-adherence to the updated rules can be assessed and imposed on
banks.

The validation rules under CL-2017-060 that are not part of the changes
identified in this CL continue to be in effect. The complete set of the updated
validation rules can be downloaded from
http://www.bsp.gov.ph/SES/reporting-templates. Banks may use the
aforementioned rules and formulations as reference for internally developing and

A. Mobini Sl., Moloie I004 Monilo, Philippines . (632l 708-7701 o www.bsp.gov.ph . bspmoil@bsp.gov.ph
reinforcing their own validation procedures, systems and controls. Such rules and
formulations, however, mainly focus in determining arithmetical consistency of the
FRP-related reports within an acceptable tolerance limit and are not intended to
capture errors arising from significant changes or movements in values reported
from one period to another nor misclassification of transactions arising from the
misuse of the report accounts.

The integrity and quality of the prudential reports prescribed for submission
to BSP ultimately rests with the bank. Adequate internal controls should be in place
to ensure that the information submitted by banks to BSP is consistent, correct and
conforms to the prescribed reporting standards.

CHI G. FONACIER
eputy Governor
{ Janu"ty 2Ot8

Att: a/s

1/
For Universal Banks and Commercial Banks and their subsidiary banks and quasi-banks in accordance with
Memorandum No. M-20U-038 dated 28 December 2017.
2/
For stand-alone Thrift Banks and Rural Banks in accordance with Memorandum No. M-2017-039 dated 28
December 2017.

Page 2 of 2
 B.a
FRP lnter Validation Rules Annex Basel lll CAR
Page 1 of8

Risk Based Capital Adcquacy Retlo Rlpo.t BASET lll

FCDU/
Foraitn Regular Foroitn Offices Typc of
RIN ParticulaE
Pcs EFCDU Total
Schedule No. I nstructions
Accounts Pc$ Pes Pe$ Amount
In USS In USS In USS Rul€/Remerks
Fduiv Eouiv
lsL3 11 :or Domestic Banks and Subsidiaries of Foreign Banks (v) Others Balance Sheet 32090000000000000( x Rule only applies to Oomestic Banks and 1.0/UNB
Subsidiaries ot Foreign Eank
Part ll 320900@(x)o000(n01

t5L3 - 12 :or Domestic Eanks and Subsidiaries of Foreign Banks - Minority Ealance Sheet 325150000000000@( x Rule only applies to Domestic Banks and 3.0/FA[_
nterest in subsidiary banks which are less than wholly-owned Subsidiaries of Foreign Eanks

Part ll 32515050000000@0( \mount in CAR should be less than or eoual

+ 32515100000000000( to FRP

rst3 - 23 :or Philippine Branch of a Foreign Eank (v) Others Ealance Sheet 320900000000000(n( x Rule only applies to Philippine Eranch of 1.0/uNB
Foreicn Banks
Part ll 3209000@0000@00: x

tst3 - 47 .. Real and Other Properties Acquired Balance Sheet 19550100000000000( Amount in CAR should be greater than or 3.0/FA[.
+ 1501500fi)0fi)m0o0( eoual to FRP
Pan lll.l 19550r00000000000( x Use Column 1

lSL3 - 155 Deleted

|sL3 - 175 tems held for safekeepin&/custodianship 38 4953o(Xx)(xxx)10000( x 1.0/uNB

495300000@0200@(
49522000000010000(
49522000000020000(
Part lll.2 49526000000000000( Use Notional Princioal Amount Column

lSL3 - 177 Deleted

tsL3 - 197 :or Domestic Banks and Subsidiaries of Foreign Banks - Other Balance Sheet 32020000000000000( x Rule only applies to Domestic Banks and 1.0/uN8
:omprehensive Income (iii) Remeasurements of Net Defined Benefit Subsidiaries of Foreign Eanks
.iability/(Asset)
Part ll 32020000000000000r

rst_3 - 198 :or Philippine Branch of a Foreign Bank - Other Comprehensive Income Balance Sheet 3202000000(x)00000( Rule only applies to Philippine Branch of 1.0/uNB
iii) Remeasurements of Net Defined Benefit Liability/(Asset) Foreign Banks

Part ll 32020000000000000i x

Type of Reconciliation Rule

1. Straightforuardrules
2. Formula Senerated rules
2.1. Same account with several COLUMNS
2.2. Combination of several accounts
3. Conditional rules
 Annex B.b CAR
FRP lnter Validation Rules Page 2 of 8

Rlviscd Risl Eased Capital Adequacy Ratio Report tor Stand Alone Thrift Banks, Rural Sanks and Cop€ratln Banks

Foreitn R€gular Forcign Offfc.s Type ol

Pcs €FCDU Total
RIN Perticula6 s€h.dul€ No, Account CoddFomulation Instructions
Accounts Pas P!s PcF Amount
In U59 ln uss In UsS Rulc/Rcmarts
FdtrIu Fduiv
-AR7EO total Notional Princioal Amount 3a 4UWUUWUUUUWUU - x FRP value is Sreater than or equal to CAR 3.0/FArL
435000000000100000 - value
435000000000200000
OFF RWA

Type of Reconciliation Rule

1. Straightforuardrules
2. Formula generated rules
2.1. Same account with several COLUMNS
2.2. Combination of several accounts
3. Conditional rules
 B.d RCBP
FRP lnter Validation Rules Annex
Page 3 of 8

Rcport on Cros-Border Fin.ncial Posltions for UniwEucommerclal Banls end their Subcidlary Thrift Banks

Pes
Foreign Regular FCDU / EFCDU Forcitn Ottices Typc of
Total
RIN Panlculars Schedule No. Account Cod€/Fomulatlon PCso Peso P€so Instructions Reconclllatlon
Accounts In UsS In US' In US$ Amount
Eduie Edulv Rule/R.nark5
lcBP30 )ue From Other Banks 2 10520000OO0O230OO0 + x :onvert amount in "Peso Accounts" to USS 2.l/UN8
105200000000290000 Jse "Demand", "Savings Deposit", "NOW" and 'Time Certificates of
)eDosit" columns
RCBP-Total 105200000000000000 x

RCBP240 )ueto Other Eanks 23 200500O10(n20O@0 i x x x x :onvert amount in "Peso Accounts" to USS 1.0/UNB
200500005m200000
RCBP-Total

Typ€ of Reconciliation Rule

1. Straightforuardrules
2. Formula generated rules
2.1. Same account with several COLUMNS
2.2. Combination of several accounts
3. Conditional rules
 Annex B.e
FRP lnter Validation Rules REE
Page 4 of 8

Erpanded Rcport on R.al €state EIposuB tor UnircRl Banks, Commerciel B:nks and Thrift aanks

TypGof Rftonciliatior
Rtil Pa.tlculars Schedule No. Ac6unt Cod€/Formulation Amount Instructlons
Rul./Remarks

REE93O \ddl Into - Secured by REM on residential properties (Amount in the FRF 11G 140150012810600001 Amount in the FRP is greater than or equal to 3.O/FArL
s greater than or equal to REES) - Past Due REE5. USE Past Due COLUMT\
S1-BP-REts 14015001900565000( USE Past Due COLUMN

Type of Reconciliation Rule

1. Straightfoeardrules
2. Formula generated rules
2.1. Same account with several COLUMNS
2.2. Combination of several accounts
3. Conditional rules
 Annex B.g PBS
FRP lnter Validation Rules Page 5 of 8

Publlshcd Balance Sheet fo. all Bank3 wlth R€sourc€s ol Pl Billlon and rborc

Type ot
RIN Pa.tlcula6 Schedulc No. Account Code/Formulatlon Entered Amount FRP Computcd Amount Instructions Reconcillation
Rulc/Rcm.rks
,8S370 )ther Liabilities Balance Sheet 230600000000000000 + x z.tlvN6
230650O0O000q)00O0 +
230700000000000000 +
230750000000000000 +
230800000000000000 +
230780000000000000
soLo/coNso x

r8s610 . Net NPLS 10, 11a. 12 140100018512600000 - :or Sched 10. USE Total Amortized Cost COLUMN less Total Allowance for credit 2.2/uNB
140100O18512600000 + osses COLUMN; For Sched 11A, USE Sum of Non-Performing, net of ITL and lTl-
140150018s126@000 - :OLUMNS: For sched 12 USE Total COLUMN
140150019000600000 +
140200018512600q)0 -
140200019012600000
soro x

Type of Reconciliation Rule

1. Straightforuardrules
2. Formula Benerated rules
2.1. Same account with several COLUMNS
2.2. Combination of several accounts
3. Conditional rules
 Annex B.k Branch
FRP lnter Validation Rules Page 6 of 8

Report of Sebctcd Bnnch Accounts for .ll Sanks

FCDU/ Type of
Peio ;@itnRe&Lr FX Olficat Tolll
RIN Prrtlcula6 Schrdule ilo. Account Cod./Formulatlon EFCDU
Amount
I nstructlons Reondllatlon
PG$ EqulY Pcs Equlv Pce Equlv Rulc/Rcmarts
la20 :urrent (Total) schedule 1la USE Current COLUMN 1.0/uN8
AtR x

]830 ast Due (Totall Schedule 11a x USE Past Oue COLUMN 1.0/uNB
ALR x

Type of Reconciliation Rule

l. Straightforuardrules
2. Formulageneratedrules
2.1. Same account with several COLUMNS
2.2. Combination of several acco!nG
3. Conditional rules
 Annex B.m Agri-Agra
FRP Inter Validation Rules Page 7 of 8

Report on ComDliance with the Mandatory Atrarian Rcform and AaricultuEl Credit undrr RA No. loom for all Banks
Forct8n FCDU/ ln o'fflcet Type of
Account code/ Peg Totel
RIN P.rtlola6 sch.dul€ No. Pcso Prso P€s Instrudions Reonciliallon
Fomulation Accounts In U59 In UsS In U5$ Amount
Fduiv Fdulu Rulc/Remarks
\GR110 )thers Schedule 24 220100001595r00o(x x x ADD Peso Accounts and Peso Equivalent of Foreign Regular COLUMN5 z. r/ UNE
220100q)151210000(
Main ReDort A 22010000159510000( x USE Amount on Date of ReDort COLUMN

\GR240 )ue to Head Office/Branches/Agencies Abroad Schedule 20 230850000000000000 ADO Peso Accounts and Peso Equivalent of Foreign Regular COLUMNS 2.l/UNB
2308s000000s000000
23085000001000000(
Main Reoort A 23085000000000000( x USE Amount on Date of Reoort COI-UMN

\GR340 )ther Comorehensive Income b.4. Others Balance Sheet 32o9ooqx)ooofiX)oo( x ADD Peso Accounts and Peso Equivalent of Foreign Regular COLUMNS 2.I/UNB
+ 320200O0O00O0O00O(
+ 32025000000000000(

Main ReDort A 32090000000000000{ x USE Amount on Date of Reoort COLUMN

\GR35O )ue From Head Office/Branches/Agencies Abroad Schedule 20 155250000000000000 x ADO Peso Accounts and Peso Equivalent of Foreign Regular COLUMNS 2.1/UN8
155250000005000000
15525000001000000(
Main Report A 155250000000ffxno( USE Amount on Date of Reoort COLUMN

Type of Reconciliation Rule

1. StraightfoMardrlles
2. Formula generated rules
2.1. Sam€ account with several COI-UMNS
2.2, Combination of several accounts
3. Conditional rules
 Annex B.n Repo
FRP lnter Validation Rules Page 8 of 8

Report on Repurchasc Agie€ment

Typr of
RIN Pa.ticular Schldulc No. Account Code/Formulation Total Anount FRP Computed Amount Instructions Reconciliation
Rule/R.marks
tEPOIO :nd of Month Balance FRP Schedule 24 tzutlruz5uSl|ru+ 1.0/UNB
1201000O2s10100000 +
r20100002510200000
IEPO Schedule I x

lEP020 )utstanding Balance as of end of reporting month FRP Schedule 24 120100002505100000 + 1.0/uN8
120100002510100000 +
t20100002510200000
REPO Schedule 2 x

Type of Reconciliation Rule

1. Straightforuardrules
2. Formula generated rules
2.1. Same account with several COLUMNS
2.2. Combination of several accounts
3. Conditional rules